Germany Legal Cannabis Market Expected To Witness A Substantial Growth Of .6 Million By 2030

Posted by Mrudula Anil Karmarkar on January 6th, 2025

San Francisco, 06 January 2030: The Report Germany Legal Cannabis Market Size, Share & Trends Analysis Report By Source (Hemp, Marijuana), By Derivatives (CBD, THC), By End-use, And Segment Forecasts, 2024 - 2030

The Germany legal cannabis market size is expected to reach USD 85.6 million by 2030, growing a CAGR of 14.9% over the forecast period, according to a new report by Grand View Research, Inc. Factors such as rising social acceptance of cannabis, growing medical applications of cannabis, increasing R&D & technological innovation, and the introduction of new cultivation technologies are expected to drive the cannabis industry in the country. For instance, in February 2024, according to data published in Reuters, 4.5 million individuals are estimated to use cannabis in Germany.

Furthermore, favorable government initiatives and reimbursement policies fuel the market growth. For instance, according to data published by the Federal Union of German Associations of Pharmacists (ABDA), the number of prescriptions for medical cannabis for Statutory Health Insurance (SHI)-insured patients in Germany was 338,500 in 2022. Furthermore, according to the same source, 14,840 Kg of cannabis was delivered to pharmacies for medicinal purposes in 2022.

Moreover, growing awareness among people regarding the therapeutic applications of cannabis and the launch of online cannabis prescription platforms drive market growth. For instance, in September 2023, Cantourage Group SE, a Berlin-based company, introduced Telecan, a telemedicine platform for medical cannabis, under the guidance of Florian Wesemann, a medical doctor. The platform offers a simple and convenient way for potential patients to access cannabis therapy.

In recent years, there has been a significant rise in the usage of cannabis and its derivatives in Germany. The medical application of CBD has gained immense popularity, leading to the development of policies for its distribution and use by the government. Moreover, conferences and various events being organized for cannabis industry leaders drive market growth. For instance, the International Cannabis Business Conference was to be held in Berlin in April 2024, Germany’s biggest annual gathering of influential political and cannabis business leaders.

The cannabis industry has witnessed the development of new techniques and technologies that aid in its cultivation, and these advancements are expected to boost market growth. The demand for technologically advanced cannabis production has led to the optimization of resources by cultivators. This, coupled with the increased utilization of hemp and marijuana in various sectors, such as personal care & cosmetics, pharmaceuticals, nutraceuticals, and food, & beverages, has impelled market growth. In addition, the use of cannabis and its derivatives by various businesses as a raw material for manufacturing products is projected to drive market growth over the forecast period.

Request sample report of Germany Legal Cannabis Market@ https://www.grandviewresearch.com/industry-analysis/germany-legal-cannabis-market-report/request/rs1

The market is driven by factors such as increasing adoption of cannabis for treating chronic diseases, positive legal developments, growing research on cannabis use, and increasing adoption & launch of CBD-infused cosmetic products. For instance, in September 2023, The Cronos Group launched a medical brand, PEACE NATURALS (bulk cannabis), in Germany. In July 2023, the company signed a distribution agreement with Cansativa GmbH, a distributor of medical cannabis in Germany.

Germany Legal Cannabis Market Report Highlights

• By source, the hemp segment accounted for the largest revenue share in 2023 due to rising demand for hemp-derived CBD oil and its health benefits. Furthermore, food manufacturing processes use hemp seeds and oil, which propels market growth.
• By derivatives,the CBD segment dominated the market with the largest revenue share in 2023, owing to the growing acceptance of CBD and its use in treating various chronic conditions.
• By end-use, the industrial-use segment held the largest market share in 2023 owing to the growing demand for hemp products, including fiber, seed, stalks, hurds, and oils for various industries, such as food & beverage, personal care, and animal care.

Furthermore, favorable government initiatives and rising demand for CBD-infused products in Germany fuel the market growth. For instance, general European Union (EU) position has been adopted by Germany, which allows the sale of non-food CBD products as long as they contain less than 0.2% Delta-9 Tetrahydrocannabinol (THC). Moreover, Küsten CBD, a German CBD cosmetics company, offers CBD cosmetics, including cooling gel for accompanying symptoms of muscle tension, osteoarthritis, & bruises, warming gel for joint pain & back pain, tattoo/body lotion for dry skin prone to acne & neurodermatitis, body oil/massage oil (like Rose Dream) for daily body care, and facial fluid (antiaging in function) for dry & sensitive skin.

Moreover, rising prevalence of chronic conditions such as diabetes, cancer, & neurological illnesses and growing research activities & clinical trials in Germany propel the market growth. For instance, in October 2023, Avextra Pharma GmbH, a biopharmaceutical company, initiated a double-blind phase 2 clinical trial for the use of Belcanto (a cannabis-based medicine) in treating cancer patients in palliative care. This medicine has been approved by The German Federal Institute for Drugs and Medical Devices (BfArM) and the relevant ethics committees, and the first patient was expected to receive the dose in December 2023.

Germany Legal Cannabis Market Report Scope

Presence of several insurance companies in the German healthcare system drives market growth. Individuals can choose between public insurance (GKV) or private insurance (PKV) in Germany. Since January 2017, public health insurers have been mandated to provide coverage for cannabis medication up to 5 ounces, which is more than the legal limit of 3.5 ounces or 100 grams per month, making Germany one of the potentially lucrative markets in Europe. The insurance scheme covers all cannabis treatments without specifying particular medical conditions, thus boosting market growth in the country.

There is a high demand for various CBD-infused products, such as oil, beauty products, and cannabis extracts, driving the market growth. For instance, in September 2021, Alternative Medical Products Inc., a supplier of cosmetic CBD products to German pharmacies, launched the CBD brand CANAVEX. It is a CBD cosmetic product sold by pharmacists without a doctor's prescription. This formulation contains high-quality CBD sourced from EU-GMP compliant and German organic hemp seed oil, as well as vitamin E.